Gst impact on already bought a flat.

346 views 6 replies

Sunil sharma

5 Points Joined June 2017

I have already bought a flat nearing completion and paid 95% with 4.5 service tax.

My possession will be on Dec 2017 but builder not raise invoice remaining 5 % in this month. He said I will generate demand letter before 1 month of possession.

Sir, GST will be coming in 1 july in that case can I will be charged tax at the GST (12%) or applicable old rate which was mentioned in my cost sheet(4.5 % service tax) when I purchase flat.

I have already bought a flat nearing completion and paid 95% with 4.5 service tax.

My possession will be on Dec 2017 but builder not raise invoice remaining 5 % in this month. He said I will generate demand letter before 1 month of possession.

Sir, GST will be coming in 1 july in that case can I will be charged tax at the GST (12%) or applicable old rate which was mentioned in my cost sheet(4.5 % service tax) when I purchase flat.

Please suggest what i will do.

Replies (6)

Abhishek Maheshwari

Article Assistant

37 Points Joined July 2011

In your case GET is apply only balance demand/invoice that is 5% value. The 95% portionon which demand raised and service tax already charge is not liable for GST.

Sunil sharma

5 Points Joined June 2017

You means say that I will pay extra cost of my Cost Sheet which was builder prepared included all taxes and booked my flat accordingly and apply loan for the same.

Abhishek Maheshwari

Article Assistant

37 Points Joined July 2011

If service tax and other all taxes are included in builder buyer agreement than builder will bear extra tax burden otherwise you have to pay the same. Generally builder does not include taxes in sales consideration. So please check the Agreement.